Monopoly without tax and without price ceiling, Macroeconomics

Assignment Help:

Here from a), profit maximizing price = 7 and Q = 10. It is shown in the figure below:-

148_Monopoly without tax.png

The consumer surplus is shown in blue area which is given as (9-7) *10*1/2 =10 dollar.

 Monopoly with tax of 50 cents per unit

Here from c), profit maximizing price = 7.25 and Q = 8.75. It is shown in the figure below:-

108_consumer surplus.png

The consumer surplus is shown in blue area which is given as (9-7.25 ) *8.75*1/2 =7.65625 dollar.

 
Monopoly without tax, but with price ceiling of $6

Here from d), profit maximizing price = 7.5 and Q = 7.5. It is shown in the figure below:-

The consumer surplus is shown in blue area which is given as (9-7.5 ) *7.5*1/2 =5.625 dollar.
* Perfectly competitive industry

In case of perfectly competitive,

MC = D

ð  5 = 45-5P

ð  P = 8

And Q from equn i) is 5

So consumer surplus = ½ * (9-5)*5 =10 dollar.


Related Discussions:- Monopoly without tax and without price ceiling

Mutual funds into stock also funds from money market, How would the followi...

How would the following influence the growth rates of theM1 and M2 money supply figures over time? a. an increase in the quantity of U.S. currency held overseas b. a shift of f

Explain about the diminishing returns to an input, Explain about the dimini...

Explain about the diminishing returns to an input. There are diminishing returns to an input while an increase within the quantity of which input, holding the levels of each of

Number of gallons of paint, The number of gallons of paint that Home Depot ...

The number of gallons of paint that Home Depot sells in a given day is normally distributed with a mean of 150 gallons and a standard deviation of 35 gallons (I realize that the di

Find the equivalent array-array factor, A 90 o perfectly conducting corner...

A 90 o perfectly conducting corner cube reflector has a shortdipole (oriented in the z-direction) placed at a distance d from the vertex. The antenna is fed by current Io. a) F

Show the equations of the as-ad model, Q. Show the equations of the AS-AD m...

Q. Show the equations of the AS-AD model? The equations of the AS-AD model To précis the AS-AD model, we can have a glance at its equations. IS-LM model was "solved" by s

What is trade liberalisation, What is Trade liberalisation Trade liber...

What is Trade liberalisation Trade liberalisation is the removal of barriers to trade. This has mainly taken the form of restrictions created by national governments like quot

Derive the engel curve for shortbread cookies, Jen spends all her income on...

Jen spends all her income on shortbread cookies (S) and cupcakes (C). Her utility function is given by: U(S,C) = S +2C. Suppose that Jen has an income of $10 and that a cupcake cos

Franchise revoked is suing mercedes, In 1999 Mercedes-Benz USA adopted a ne...

In 1999 Mercedes-Benz USA adopted a new pricing policy, which it called NFP (negotiation-free process), that sought to eliminate price negotiations between customers and new-car de

Keynesian dyanamic multilpier, what is static and dynamic multiplier in key...

what is static and dynamic multiplier in keynesian theory?

COMPLETE KEYNESTION MODEL, WHAT IS THE SHAPE OF AGGREGATE SUPPLY CURVE IN C...

WHAT IS THE SHAPE OF AGGREGATE SUPPLY CURVE IN COMPLETE KEYNESIAN MODEL

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd